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Google Play's New Subscription Revenue Sharing Model Comes Into Effect

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Google Play's New Subscription Revenue Sharing Model Comes Into Effect
Highlights
  • Google subscription revenue split changed from 70:30 to 85:15.
  • Google's new revenue-sharing model applicable after 12 months.
  • Apple has a similar subscription model for App Store.

Google's new revenue-sharing policy for subscriptions has come into effect. Under the new policy, the subscription revenue split has become more generous to developers. Following a similar move made by Apple in 2016, Google from January 1 changed the revenue split from 70:30 to 85:15. This means that Google will only be deducting 15 percent instead of 30 percent from providers as distribution and other fees. Under the new model, developers will make more money as they will be able to keep 85 percent of the subscription revenue instead of 70 percent. Notably, the new subscription revenue sharing by Google will be applicable only when publishers retain users for a minimum period of 12 months.

According to the new terms of service, shared by Android Police, developers who offer in-app subscriptions will get a deduction of 30 percent from the bill, per paid user for the initial 12 months of buying the product. Once the period of 12 months is exhausted, the developers will have to pay just 15 percent of the subscription price as fees to Google. This rate will be applicable till the time users are subscribed to the product.

It should be noted that the revenue split is valid only for the subscription content in the Google Play Store. This means if you purchase something through a regular one-time in-app purchase, the developer will not save more money. This move is expected to push developers to create content in mobile applications under the subscription model. 

Apple had announced a similar move in June 2016. Under the changes subscription model, Apple now splits subscription revenue 70:30 with developers for the first 12 months of subscribing to an app. Once the 12 month period is crossed, Apple increases the split to 85:15 in favour of the developer. Meanwhile, earlier rumours had suggested that Google start running the new model without requiring developers to retain a subscriber for 12 months.

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